Hanchang Paper한창제지

Hanchang Paper is still loss-making on a trailing basis, with a thin operating profit in the first half of 2026 and heavy debt relative to equity.

Hanchang Paper makes manila board, white board and paperboard for packaging and publishing, with a market value of about ₩31.6B at ₩2,560 a share. Trailing figures to H1 2026 show revenue of ₩271.3B, a small operating profit of ₩3.9B, but a net loss of ₩5.8B and negative free cash flow. The shares trade well below their 52-week high and the stock has fallen over the past year.

What stands out

• Trailing operating margin is 1.4%, but net margin is -2.1%, so the business is not yet profitable after financing and other costs.
• Borrowings of ₩148.3B against cash of ₩15.5B, with liabilities at 156.8% of equity, mark a heavily indebted balance sheet.
• Full-year 2025 was a loss, with revenue down 9.3% and a net loss of ₩13.1B, after a small profit in 2024.
• The price-to-book ratio of 0.2 is low relative to peers, but the data does not include a fair value estimate or earnings forecast to judge it.
• Foreign ownership is 1.4% and unchanged over 60 days, and the shares show no short-selling balance.

What to watch

• The next annual and quarterly results, to see whether operating profit turns into net profit and free cash flow turns positive.
• The recent filing on adjustments to conversion prices, warrant exercise prices and exchange prices, which may affect share dilution.
• Ongoing lawsuit filings noted in August 2026 and the next shareholder holding reports, as the data does not describe their scale.